17 minute read
Simon Hedaux, founder and CEO of Rethink Productivity, asks how much revenue you are losing to queues in your store and advises on what you can do to reduce them
from Retail News May 2020
by Retail News
Calculating the cost of a queue
Simon Hedaux, founder and CEO of Rethink Productivity, asks how much revenue you are losing to queues in your store and advises on what you can do to reduce them.
WHEN there was a call for wannabe film extras to come to Liberty Hall a few months ago, the chance of appearing in Scott Ridley’s latest Matt Damon and Ben Affleck film created a line that stretched around several streets. It seems there are things that people will queue for. And there are a few hot tech and sneaker releases that enjoy creating a queue too, with the more people in it, and the subsequent social media impressions it creates, the better. However, for most stores, the exact opposite is true; it’s a sign the operation is not working as it should and that customer experience is suffering. And never more so than in the world of grab-and-go convenience retailing. A UK university psychology professor, Adrian Furnham, studied queues and came up with his “rule of six”, that customers are reluctant to join a line once it has six people in it. While this is a simplification and willingness to queue will vary depending on what you are buying, it’s a useful rule of thumb to remember when looking at your own business.
The fluidity of time
A study of US supermarkets reported in Harvard Business Review found that increasing a queue length from 10 to 15 people dropped sales by up to 10%. While most stores won’t have queues that long, a UK study found that supermarkets’ queues are the ones customers like least and 44% of shoppers report they will leave their planned purchases after six minutes spent queuing. There is branch of psychology that is devoted to looking at the fluidity of time, how our perceptions of time vary depending on what we are doing. Five minutes lasts forever when we’re impatient yet flies by when we are enjoying ourselves.
Experiential queuing: the Disney lesson
Disney are masters of creating an experience from queues and provide diversion and entertainment that becomes part of the overall ride experience at their theme parks. Without going to the Disney extremes, smart retailers can divert customers looking for distraction in a queue and tempt them with impulse purchases or place their news and magazines offer next to the queue to create a reading opportunity, as well as the chance for
an extra sale. While there are ways to make the best of a bad job if a queue develops, if we want to be the first-choice convenience stop for our customers, what can we do to minimise our queues? The simple reason a line develops is that there is a mismatch between customer demand and the resources available to serve them as demand outstrips capacity.
What causes queues?
The trick to minimise queues forming is to get into the detail of your operation and understand what the drivers of your queues are. The common causes we see include:
• Stores not routinely planning for their trading patterns. Are your busy times related to commuter patterns, school runs, shoppers looking for their evening meal or the evening dash to get emergency snacks and beer? Do you need an extra till opening around the peak times? • Team breaks planned at peak customer times, reducing capacity just when it matters most. • Colleagues focusing on tasks rather than customers, for example being engrossed in putting stock on the shelf. • Click & Collect parcel pick-up that takes colleagues away from the tills for a long walk to the stock room and protracted search for the parcel. • Services such as Post Offices, Lottery terminals, newspaper delivery, phone top-ups, dry cleaning etc. that can create prolonged transactions and add to wait times for a customer wanting to grab a litre of milk and go. • Slow technology connections that add a few seconds to the average transaction time.
The tricky trade-off
It’s a tricky commercial trade-off: too few colleagues and there’s a queue, too many and you are wasting salary spend that could be invested in adding value. Customers make a trade-off too, theirs is between queue time and travel time. If there’s always a queue in your nearest shop, it can be better to go to the next shop and avoid the wait. Even if it takes slightly longer in reality, it will feel quicker due to how we perceive time when we are busy rather than just standing and waiting our turn. Businesses are coming up with good ways to improve and eliminate their queues.
Reviewing their rotas against their business pattern to make sure they have the right team members available to provide a great service for their customers.
Encouraging use of contactless cards. In these healthconscious times, it not only reduces potential virus transmission, contactless payment takes half the time of chip and pin and is usually quicker than cash payments too.
Using self-checkouts alongside traditional checkouts to give customers a choice and keep the lines moving.
Scan and go –using apps or handheld tech so customers do their own scanning and packing with just a quick drop into a payment point as they leave.
Current social distancing must be observed in-store, making queues even trickier to manage.
to deliver. Tokyo shoppers have been avoiding queues for many years, since Japan became the vending machine capital of the world, with everything from milk and bananas to hot food and umbrellas available in shop-front vending machines. It’s been slow to take off elsewhere, with only a handful of vending-only shops existing across Ireland and the UK. Amazon is using technology to eliminate queues with their Amazon Go stores. Shoppers check-in using their app and clever trackers combined with integrated payment mean they just walk out with their selected items. There are 25 Amazon Go stores across four US cities and the company is reported to be looking at new sites across the world. With all the innovation heading our way and convenience retailing being all about customers getting what they need quickly and easily, it’s the perfect time to review our queues.
About the author:
Simon Hedaux is founder and CEO of Rethink Productivity, a world leading productivity partner which helps businesses to drive efficiency, boost productivity and optimise budgets. For more information see rethinkproductivity.co.uk.
Eating healthily amid the pandemic
Consumers are being reminded to eat healthily during the current pandemic.
YOU cannot pick up a newspaper or open a website without seeing headlines like ‘How to stay healthy in a lockdown’, ‘Tips to stay healthy while cocooning’ or ‘Making healthy food choices in a pandemic’. Consumers are purchasing more from grocery stores than they have ever done, as evidenced by the latest figures from Kantar and Nielsen (see our news report on Page 4), but are they buying and eating healthily? There are certainly more shoppers than ever before taking the time to cook meals from scratch, which is a good sign, and home baking has exploded in popularity, although plenty of indulgent treats like ice cream and frozen desserts have also skyrocketed. Pre-pandemic, the health and wellness trend was deeply embedded in our collective psyche, as Irish consumers were happy to spend more on products that are slightly more expensive as they deem them to be good for their health, according to the Euromonitor report into Health & Wellness in Ireland from January of this year. The 2018 introduction of the tax on sugar-sweetened drinks led to an intensive debate on the health state of the Irish population, with obesity levels coming into sharp focus. This, combined with a growing economy, meant that the health and wellness sector continued to grow. Consumers in Ireland are actively reducing their sugar and salt intake, as well as cutting back on processed foods, according to Euromonitor’s report into ‘Better For You Packaged Food’. Many food manufacturers, including mainstream chocolate companies, have been increasingly eager to reduce the sugar content of their products, with private label also reformulating products to reduce sugar and salt content. Quite what effect the current pandemic will have on long-term shopping patterns and trends is unclear, but one would hope that consumers’ desire to eat healthier is ingrained into our hardware by now.
Benecol
Benecol have been helping people all over the world enjoy eating healthily for nearly 25 years. It all started with Ingmar Wester, a Finnish scientist who knew that plant stanols reduce cholesterol by partly blocking its entry to the bloodstream. After years of
research, he figured out that combining these plant stanols with rapeseed oil created plant stanol ester. And that this unique, patented ingredient could be used in food to lower cholesterol without compromising on taste. The unique plant stanols of Benecol partially block cholesterol from getting into your bloodstream. Whether it’s cholesterol produced by your body naturally, or the cholesterol found in your food, plant stanols can help prevent it from getting through the intestine wall. The plant stanol ester in Benecol foods has been identified as one of the 10 greatest nutritional discoveries in the world over the past 30 years. Leading nutrition researchers concluded that plant stanols are one of the only nutritional components that can truly lower cholesterol; high cholesterol is a risk factor in the development of coronary heart disease. More than 80 independent clinical studies have shown that a daily intake of 1.5-2.4g of plant stanol ester, the active ingredient in Benecol, can reduce cholesterol by between 7–10% within two to three weeks. And there are 30 gold standard clinical trials supporting the safety and effectiveness of plant stanols. Plant stanol ester remains the basis of the entire Benecol range today. Because living well, by taking care of cholesterol, can be combined with a life well-lived, full of great food, friends and family. Nearly two decades later and Benecol’s range has grown to include spreads, yogurts & yogurt drinks trusted by millions around the world for their delicious, convenient and proven way to lower cholesterol. Benecol have designed a three-week ‘ONEderful Routine’ programme
to help consumers establish a new ‘ONEderful Routine’.
Kind
Kind was founded in 2004 by Daniel Lubetzky to create a snack that was both healthy and tasty but also create a platform to spread kindness. Kind has been growing year on year ever since, which shows not only the need for a nutritious snack on the go but also an affinity to the community that Kind has created. Since 2019, Kind has expanded to over 40 countries thanks to its partnership with Mars. Kind officially launched with Mars Ireland in January 2019; and has sold over two million bars since then. All Kind products are gluten-free, low GI, and packed with heart-healthy fats from nuts. In Ireland, the core range currently has eight flavours and there are three in the Protein range, with plans to launch Kind Breakfast later in the year. “From our best-seller Dark Chocolates Nuts and Sea Salt to Crunchy Peanut Butter, we have a unique variety of flavours that consumers love,” explains Anne Sheeran, Kind Brand Activation Manager, Mars Ireland. Kind’s journey in Ireland is just getting started and now is the time to give Kind a try! the lookout for healthier alternatives to chocolate bars. Grenade now boasts an impressive 12 Carb Killa bar flavours, including the most recent recruits to the range - White Chocolate Salted Caramel, Dark Chocolate Raspberry and Chocolate Chip Salted Caramel. The range has also expanded to include healthier shakes, spreads and biscuits, all featuring on-trend indulgent flavours like Fudge Brownie, Strawberries and Cream and White Chocolate Cookie.
Kind officially launched with Mars Ireland in January 2019; and has sold over two million bars since then.
Grenade Leading sports nutrition brand,
Grenade, recently celebrated its fifth birthday, since launching its Carb Killa range. Renowned for being low in sugar and high in protein, Carb Killa launched its first three delicious protein bar flavours back in 2015; Caramel Chaos, Cookies and Cream and Fudge Brownie. Since the launch in 2015, the distribution of products has now expanded globally to an impressive 50 countries, with Carb Killa now selling circa €170m worth of bars worldwide. The success of Grenade’s Carb Killa range comes during a recent shift in consumer snacking trends and behaviour - and not just the die-hard gym bunnies upping their protein intake, but everyday consumers increasingly on
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Teeling Whiskey Frontline Charity Bundle FOLLOWING the phenomenal response to the release of its Distillery Exclusive Whiskey supporting Front Line Heroes where the proceeds were donated to charities supporting those battling at the front line against the Covid-19 pandemic, Teeling Whiskey has decided to create a Teeling Whiskey Frontline Charity Bundle, which is available to purchase via the Teeling Front Line Heroes website (teelingfrontlineheroes.com). All proceeds from the charity bundles, bar the tax man’s take, are going to support the heroes at the front line of the battle against Covid-19.
BLACKS Golden Rum, from Kinsale-based Blacks Brewery and Distillery, won a prestigious gold award at the World Rum Awards. Husband and wife duo and founders of Blacks Brewery and Distillery, Sam and Maudeline Black originally opened as a craft beer brewery in 2013, before expanding and opening their distillery in 2015, where they began producing gin. In 2018, they made history with Blacks Spiced Rum, Ireland’s first-ever rum, made entirely from start to finish in Ireland. Continuing to add to their extensive range of awardwinning craft beers and spirits, this year saw the first bottle of Blacks Golden Rum hit the shelves, after maturing in ex Irish whiskey oak barrels for the last five years. Blacks Golden Rum was the only rum to win Gold in its category - World’s Best Column Still Rum 5 Years & Under, and the only Irish spirit to make the winners’ list. For more information, visit www.blacksbrewery.com. Blacks Golden Rum wins at World Rum Awards
Edward Dillon adds Whispering Angel to portfolio
FOLLOWING the addition of Château d’Esclans, the leading Provence Rosé winery, to Moët Hennessy’s portfolio of wines and spirits, Edward Dillon becomes the distributor of the Château’s Whispering Angel, Rock Angel and Château D’esclans collection of wines in the Republic of Ireland. “The addition of Château d’Esclans and its enviable range of wines to the Moët Hennessy portfolio is a wonderful opportunity for Edward Dillon,” noted Andy O’Hara, Edward Dillon CEO. Whispering Angel (RSP €25) is the brand that stimulated much of the rosé lifestyle phenomenon, while making an outstanding contribution towards establishing rosé in today’s top shelf drinks landscape; Rock Angel (RSP €40) bears a more complex and structured taste profile, bringing it in into a more premium realm, while the Château D’esclans collection, Château d’Esclans (RSP €44), Les Clans (RSP €71) and Garrus (RSP €120) is the key collection for connoisseurs of Provence Rosé.
Jameson partners with a global 24-hour radio festival
JAMESON Irish Whiskey recently announced a creative collaboration with NTS Radio for their digital age music festival, Remote Utopias. The festival, a 24-hour live radio broadcast, took place on May 2, connecting artists across the world for a series of live performances and musical experiences, with Irish artists Rejjie Snow and Maria Somerville part of the lineup, broadcasting live from Ireland.The festival was streamed straight to your sofa at nts.live with Jameson helping to support artists hit hardest by COVID 19, with the broadcast also raising funds for The Global Food Banking Network. Jameson’s co-curated shows are being made available through Jameson Connects: The Stay Inn, a virtual communal platform for fans to connect through culture, craic and curated content (jamesonwhiskey.com).
Irish whiskeys set sail for Asia AS Asia is the first region to emerge from the Covid-19 lockdown period, Walsh Whiskey’s brands, Writers’ Tears and The Irishman, are in pole position to expand, following the recent appointments of several new distribution partners. The company, led by founder Bernard Walsh, has appointed exclusive distributors for both brands in leading markets, Japan (Lead Off Japan), South Korea (Taesan Liquor), Taiwan (Dong Hsun Hsin), Singapore (Original Whiskeys) and also in Sri Lanka (Signature Ceylon Beverages). Writers’ Tears and The Irishman are already represented in Malaysia (Fortier Wines & Spirits). “We look to build strong, dynamic, mutual partnerships in each of the markets that we enter, and Asia is no different,” noted Bernard Walsh.
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